Research published by the TUC shows that women earn less than their male counterparts at every stage of their working lives, but the biggest gender pay gap is when women reach the age of 50!
The research looked at the earnings of men and women in full-time employment. At age 18 – 21 a woman will earn £1,845 less than her male colleagues and as time goes by the pay gap increases. Women aged 22 – 29 earn £2,305 per annum less, and when women reach the age of 40 the gap in annual earnings doubles from £3,670 at age 30 to £7,400 per annum when a woman reaches the age of 40.
The TUC says one of the reasons is the impact that having children has on a woman’s career path, as they often return to work in lower-paid roles.
But the pay gap doesn’t get any better as women get older. At age 50 the gap between men’s and women’s annual pay gets even wider. Women in their 50s hit a gender pay gap of £8,421 per annum. The research points to the long-term impact of lower paid work, which has over the years, perhaps offered fewer promotion prospects. Plus as women get older caring responsibilities particularly for elderly relatives comes into play.
There is a welcome shift in attitudes towards equal pay for women doing the same job as men. The introduction of the Gender Pay Gap Reporting that came into effect in April, means employers are being forced to look at why their female employees earn less than men in the same roles and take action.
Gender Pay Gap Reporting will usually fall under the remit of the Payroll Department. At All Payrolls our clients outsource their entire payroll function to us. If this is something we can help you with please get in touch. One of our head office payroll professionals will be more than happy to talk to you.